Table Of ContentThe Uncommon
Entrepreneur
How to start and operate your own successful business
Books by the author
The Uncommon Investor: A contrarian's guide to investing in the stock
market
The Canadian Small Business Survival Guide
Plays by the author
Curator's Park
Dark Age's Romance (written with Guy Petzall)
The Death of Parent God
The Gray Zone (a translation of Jaromir Novak's work)
Les Toilettes
Pseudopod Rejects (written with Guy Petzall)
The Suicide Parlour
The Uncommon
Entrepreneur
How to start and operate your own successful business
by Benj G@iII<anckr
INSOMNIAC PRESS
Copyright © 2000 by Benjamin Gallander
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted, in any form or by any means, without the prior writ-
ten permission of the publisher or, in the case of photocopying or other repro-
graphic copying, a licence from CANCOPY (Canadian Copyright Licensing
Agency), 1 Yonge St., Suite 1900, Toronto, Ontario, Canada, M5E 1E5.
Edited by Kate Harding
Copy edited by Melanie Morassutti
Designed by Mike O'Connor
Canadian Cataloguing in Publication Data
Gallander, Benjamin, 1957-
The uncommon entrepreneur
Includes index.
ISBN 1-895837-72-3
1. New business enterprises - Planning. 2. Small business - Management. I. Title.
HD62.5.G344 2000 658.1'141 COO-930476-2
The publisher gratefully acknowledges the support of the Canada Council, the
Ontario Arts Council and Department of Canadian Heritage through the Book
Publishing Industry Development Program.
Printed and bound in Canada
Insomniac Press, 192 Spadina Avenue, Suite 403,
Toronto, Ontario, Canada, M5T 2C2
www. insomniacpress .com
Contents
Acknowledgements 9
Preface 10
Parti
What is a Small Business? 13
Types of Small Businesses 14
Can Small Business Compete? 16
Why Businesses Fail 17
The Pros and Cons of Operating you own Business 21
Three Critical Questions 23
Five Key Ingredients for Business Success 24
You! 27
Case Analysis 30
Case 1: The Decision 31
Part II
Cycles 33
What Type of Business Organization? 37
Proprietorship 37
Partnership 39
Corporation 43
But Where Will I Obtain the Money? Financing the Business 47
Time Management 50
Critical Path Scheduling 52
Factors Affecting Sales 53
Predicting Sales 56
Case 2: Hot Dogs!!! 60
Part III
Cost-Benefit Analysis 61
Risk and Insurance 62
Coping with Risk 63
Finding an Agent 64
Types of Policies 64
The Accountant 66
The Lawyer 67
The Banker 68
Employees 69
Entrepreneurial Style 73
The Payroll System 74
Computers and Small Business 78
Government: Friend or Foe? 83
Other Government Related Areas 87
Taxes 99
Government Publications Worth Taking a Look At 102
Business Ethics 103
Minimize Those Taxes 104
Buying an Existing Business 112
The Franchise Option 116
Case 3: Herbert's Variety Store 119
Case 4: Barb's Blues 119
Part IV
Eight Quick Tips 123
Collect Those Accounts Receivable 125
Inventory 128
The Inventory Count 129
Choosing Your Location 136
Where to Set Up: The Home Versus Office Dilemma 139
Layout 143
Marketing 146
What's in a Name? 151
Who Will Your Customers be? 152
Preparing a Marketing Plan 156
Case 5: Joan's Stuffed Dolls 15 8
Case 6: The Jonson Saga: Part 1 159
PartV
How I Hate Those Numbers! 161
Profit or Loss? The Income Statement 161
The Balance Sheet 164
Case 7: Jim's Fix-It: Part 1: Bookkeeping 169
Case 8: Jim's Fix-It: Part 2: Planning Your Cash Flow 175
Case 9: The Jonson Saga: Part 2: The Break Even Analysis 182
Case 10: A Case on Wood and Stuff: Ratio Analysis 188
Case 11: Jill's Crafts 194
Part VI
The Business Plan 197
Conclusion 208
Appendix I: Case Solutions
Case 1: The Decision 209
Case 2: Hot Dogs!!! 210
Case 3: Herbert's Variety Store 212
Case 4: Barb's Blues 213
Case 5: Joan's Stuffed Dolls 215
Case 6: The Jonson Saga: Part 1 219
Case 7: Jim's Fix-It: Part 1 221
Case 8: Jim's Fix-It: Part 2 223
Case 9: The Jonson Saga: Part 2 229
Case 10: A Case on Wood and Stuff 232
Case 11: Jill's Crafts 234
Appendix II
Glossary 240
Appendix III
Index 246
The Contest 250
Charts, Checklists, Exhibits, Graphs, and Tables
Starting and Operating your own Business 23
Entrepreneurial Self-Survey 29
The Business Cycle 34
The Product Life Cycle 36
Partnership Agreement Checklist 42
Comparison of Proprietorships, Partnerships and Corporations 46
Sales Prediction Checklist 59
Total Payroll Sheet 76
Employee Payroll Sheet 77
Comparison Chart of Business Options 118
Accounts Receivable Table 126
Physical Count Card 130
Perpetual Inventory Control Card 132
Inventory Control Checklist 136
Location Checklist 139
Home Versus Office 143
Space Valuation 145
Marketing Mix Strategies 151
Sample Income Statement: Non-Manufacturing Business 164
Sample Income Statement: Manufacturing Business 165
Sample Balance Sheet 168
Trial Balance Worksheet 176
ABC Ltd.: Income Statement 177
ABC Ltd.: Balance Sheet 177
Cash Flow Worksheet 183
Break Even Graph 187
Break Even Formulas 188
Business Plan Chart 204
Business Plan Checklist 204
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Acknowledgements
A number of people have been wonderful in helping me put this book
together, and to them I express my deep appreciation for their aid and their
friendship. Some of these people include: Yeing-Moi Yeung, who stands
steadfast by my side and gives me support to do projects like this; Carol
Pauker, who spent many hours turning my "English" into a real, compre-
hensible language. Carol's knack of criticizing constructively and initiating
improvements is an art; David Ossea, who also spent numerous hours edit-
ing this work. I would be remiss if I did not mention that David still turns a
great pivot on the double play; Ben Stadelmann, who has been a friend and
business partner for over twenty years and seems to either lend a hand or be
instrumental in almost all my various and sundry projects and escapades;
Max Abramowitz, who has contributed the chapter on computers and small
business, and lets me stay at his apartment in New York; Insomniac pub-
lisher and longtime friend Mike O'Connor, who is taking another gamble
on one of my books; Kate Harding, who did the final edit on this book to
make certain that all of the i's were dotted and t's were crossed; my parents,
who stood by me, even when it appeared I wasn't doing one heck of a lot,
except maybe a tiny bit of thinking. Also, I would like to thank Mike
Speyer, Todd Vercoe, Nancy Turk, Tony Hawke, Lloyd Davis and Ellen and
Candy Pauker, who lent their skills in various aspects of this guide.
Thanks.
